Emirates NBD earns AED 2.1 billion in the first quarter

According to the newspaper, the net interest income increased by 45% compared to the same period in the previous year, and non-interest income witnessed a growth of 48% compared to the same period of the previous year with the acquisition of Denizbank in 2019.

Net profit decreased by 24% compared to the same period of the previous year due to the increase in the allocations that the bank created, which compensated for the increase in loan growth, high fee income and improvement in margins, and the group’s balance sheet continues to maintain its strong position, good rates in liquidity, credit quality, and ratios Capital.

While credit quality was stable in the first quarter of 2020, the Group raised provisions for impairment to cover phases 1 and 2 to recognize the possible decline in credit quality during subsequent quarters and that resulted from the Covid-19 pandemic.

Total income reached 6.9 billion dirhams, up 46% compared to the same period in the previous year as a result of loan growth and higher fee income, including Denizbank.

The impairment provisions increased to reach 2.6 billion dirhams, with an increase in the net cost of risks by 210 basis points annually as a result of the Group increasing the coverage of phases 1 and 2 of the expected credit loss provision, while the net interest margin witnessed an improvement of 19 basis points compared to the same period of the year Rate, up to 3.02%, supported by the positive impact of Denizbank.

Total assets increased by 1% compared to the end of the year 2019 to reach AED 692 billion, while customer loans increased by 1% compared to the end of the year 2019 to reach 443 billion dirhams.

Customer deposits are still maintaining their levels for the year 2019 at around 467 billion dirhams, and the proportion of low-value loans has remained stable at 5.5%, while the coverage rate has improved by 8.2% to reach 120.5%.

The liquidity coverage rate was 149.7% and the loan-to-deposit ratio is 94.8%, which indicates the proper state of liquidity, while the first tier ratio of ordinary shares was 14.8%, which is higher than the minimum requirement.

Hisham Al Qasim, Vice Chairman and Managing Director of Emirates NBD Group, said that the bank was able to achieve a net profit of 2.1 billion dirhams for the first quarter of 2020 and enhance its balance sheet, and in light of the unprecedented challenges that the global economy and banking sector are witnessing as a result of the pandemic 19- We are still continuing to provide our full support to the efforts made by the rational Emirates government and the central bank to take urgent and unprecedented precautions, which were to implement preventive measures to protect the health and safety of the country's residents and provide a comprehensive economic support plan to support customers.

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